NYSE:TPH appears to be flying under the radar despite its strong fundamentals.

Discover TRI POINTE HOMES INC (NYSE:TPH), an undervalued stock highlighted by our stock screener. NYSE:TPH showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

A Closer Look at Valuation for NYSE:TPH

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:TPH scores a 6 out of 10:

• Based on the Price/Earnings ratio of 10.14, the valuation of TPH can be described as reasonable.
• TPH's Price/Earnings ratio is a bit cheaper when compared to the industry. TPH is cheaper than 74.63% of the companies in the same industry.
• When comparing the Price/Earnings ratio of TPH to the average of the S&P500 Index (26.01), we can say TPH is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.95, the valuation of TPH can be described as very reasonable.
• Based on the Price/Forward Earnings ratio, TPH is valued cheaper than 86.57% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.32, TPH is valued rather cheaply.
• TPH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TPH is cheaper than 62.69% of the companies in the same industry.
• TPH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• TPH has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NYSE:TPH's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:TPH, the assigned 6 is a significant indicator of profitability:

• The Return On Assets of TPH (6.99%) is better than 61.19% of its industry peers.
• The Profit Margin of TPH (9.25%) is better than 74.63% of its industry peers.
• In the last couple of years the Profit Margin of TPH has grown nicely.
• Looking at the Operating Margin, with a value of 11.52%, TPH is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
• TPH's Gross Margin has improved in the last couple of years.

Health Assessment of NYSE:TPH

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:TPH, the assigned 7 reflects its health status:

• An Altman-Z score of 3.91 indicates that TPH is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.91, TPH is in the better half of the industry, outperforming 65.67% of the companies in the same industry.
• TPH has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
• TPH has a Current Ratio of 8.55. This indicates that TPH is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 8.55, TPH belongs to the top of the industry, outperforming 91.04% of the companies in the same industry.
• A Quick Ratio of 2.11 indicates that TPH has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.11, TPH belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.

Looking at the Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:TPH, the assigned 4 reflects its growth potential:

• The Earnings Per Share has been growing by 13.52% on average over the past years. This is quite good.
• The Revenue is expected to grow by 12.97% on average over the next years. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of TPH for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.